US-based Noble Energy says it is imperative that the Israeli government follows through with and approves a framework agreement to develop Leviathan and Tamar, which was presented to the Knesset yesterday (2 September).
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Map of Israel. From Noble. |
Noble said it is working diligently with the government of Israel to address matters necessary to facilitate the development of its discoveries at Tamar and Leviathan and ensure a stable investment climate.
"Under the leadership of the Prime Minister and the Minister of Energy and Water Resources, a regulatory framework meeting these objectives has been overwhelmingly approved by the Israeli cabinet and yesterday was presented to the Knesset,” David L. Stover, Noble Energy chairman, president and CEO said. “It is imperative that the government of Israel follow through on this approved framework without further delay. Noble Energy remains fully prepared, and is well positioned, to take the actions necessary to protect the value of its assets."
The Knesset is the legislative branch of the Israeli government, that passes all laws, elects the president and prime minister, approves the cabinet, and supervises the work of the government.
Last month, the Israeli government entered into a deal with Noble Energy and consortia partner Delek Energy to develop Leviathan and Tamar, in addition to Karish and Tanin, offshore Israel.
"Regional demand supports the further development of our world class Tamar and Leviathan fields. Noble Energy continues its ongoing discussions with natural gas customers throughout the region, and yesterday the government of Egypt publicly reiterated its support for the import of gas from Israel for both domestic and LNG export purposes. We are confident that the quality of our Israel assets, extensive appraisal and planning efforts, and proven track record of project execution and operating performance position us well to supply natural gas to the substantially underserved regional market," Stover said.
Noble confirmed with OE that on 13 August, Prime Minister Benjamin Netanyahu and Minister of Energy Dr. Yuval Steinitz announced that the Government of Israel finalized the regulatory framework which provides a path forward for the development of Leviathan, Karish, Tanin and the further development of Tamar.
“The approved new framework provides a mechanism for regulatory stability for at least 10 years, does not reopen existing contracts and agreements, and allows Delek Group to retain its current ownership in Leviathan,” Delek said in its 2Q 2015 report.
Leviathan is one of the largest discoveries in the past decade and is Noble’s largest exploration discovery in the company’s history with an estimated 19 Tcf of gross natural gas resources. It is located in the Mediterranean Sea, about 130km off the coast of Israel in 1600m water depth.
Noble had originally anticipated Leviathan’s first phase of development to be approved in 2014, but had experienced several setbacks from Israel’s government.
Tamar was first discovered in 2009 and went into production in 2013, and at the time was estimated to contain gross mean resources of 10 Tcf of natural gas.
According to Delek’s 2Q 2015 report, the Tamar field continued production of natural gas, selling about 1.8 Bcm in the period, a 12.5% increase from 1.6 Bcm year-over-year. In addition, Tamar sold 85,000 bbl of condensate in 2Q, compared to 82,000 bbl in 2Q 2014, marking a 3.6% increase.
Noble operates Leviathan with 39.66% interest. Partners include Delek Drilling (22.67%), Avner (22.67%), and Ratio Oil Exploration (15%).
As of now, Noble operates Tamar with 36%. Its partners include Isramco Negev 2 LP (28.75%), Delek Drilling (15.625%), Avner (15.625%) and Dor Gas Exploration (4%).
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